TMI Blog2022 (4) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit. Any disallowance computed under Section 14A pertains to computation of income under the normal provisions of the Act and cannot be read into the provisions of Section 115JB of the Act pertaining to computation of book profits for levy of minimum alternate tax. Amounts disallowed under section 14A cannot be added to the book profits computed under Section 115JB. Thus the finding given by the Tribunal on the points inasmuch as invoking of Section 154 and Explanation 1 (f) to Section 115JB being squarely covered, the same cannot be found fault with. We are of the considered view that the Miscellaneous Petition filed by the revenue under Section 254(2) of the Act was wholly misconstrued. - Decided in favour of assessee. - I.T.A.No.167/2021 - - - Dated:- 13-4-2022 - HON BLE MRS. JUSTICE S. SUJATHA AND HON BLE MRS. JUSTICE J.M. KHAZI APPELLANTS (BY SRI E.I. SANMATHI, ADV.) RESPONDENT (BY SRI SHREEHARI KUTSA, ADV.) J U D G M E N T S. SUJATHA, J., This appeal is filed by the revenue under Section 260A of the Income Tax Act, 1961 ( Act for short) assailing the orders dated 22.01.2020 and 10.04.2019 passed by the Income Tax Appellate Tribunal, B B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court. 3. Learned counsel for the revenue submitted that the Tribunal has failed to appreciate the provisions of Explanation 1(f) to Section 115JB(2) in a right perspective. Referring to the said provision it was submitted that the amount or amounts of expenditure relatable to any income to which Section 10 other than the provisions contained in clause (38) thereof or Section 11 or Section 12 apply has to be considered for the purpose of Section 115JB(2) while considering the book profits. The order of the Tribunal is perverse in not following the judgment rendered by the said Tribunal in the case of DCIT vs. Shobha Developers reported in 58 Taxmann.com 107 dated 09.01.2015, whereby it has been held that the disallowance under Section 14A has to be adopted while arriving at book profit. Learned counsel further submitted that the Miscellaneous Petition filed under Section 254(2) of the Act has been dismissed by the Tribunal without application of mind and hence seeks to answer the substantial question of law in favour of the revenue and against the assessee. 4. Learned counsel for the assessee justifying the impugned orders submitted that the authorities ought not to have inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this section unless the authority concerned has given notice to the assessee or the deductor or the collector of its intention so to do and has allowed the assessee or the deductor or the collector a reasonable opportunity of being heard. (4) Where an amendment is made under this section, an order shall be passed in writing by the income- tax authority concerned. [(5) Where any such amendment has the effect of enhancing the assessment or otherwise reducing the liability of the assessee or the deductor or the collector, the Assessing Officer shall make any refund which may be due to such assessee or the deductor or the collector. (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee or the deductor or the collector, the Assessing Officer shall serve on the assessee or the deductor or the collector, as the case may be a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly. (7) Save as otherwise provided in sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Book Profits has been prescribed under MAT provisions. The issue posed for our consideration is whether computation provisions prescribed for computation of total income under normal provisions with reference to section 14A can or cannot be taken into consideration while computing Book Profits under MAT provisions. 9. Having regard to this decision, the decision cited by the revenue in the case of Shobha Developers, supra has been considered. At this juncture, it would be beneficial to refer to the co-ordinate bench decision of this Court in the case of Karnataka State Industrial and Infrastructure Development Corporation Ltd., vs. Deputy Commissioner of Income Tax reported in 431 ITR 255 (Kar.), wherein the computation of book profit with reference to Sections 14A and 115JB has been considered and it is held that Explanation 1 in Section 115JB(2) has been inserted so as to provide that if any provision for diminution in the value of any asset has been debited to the profit and loss account, it shall be added to the net profit as shown in the profit and loss account for the purpose of computation of book profit. Any disallowance computed under Section 14A pertains t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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